The former Rangers defender has been in the football wilderness at Aston Villa under Paul Lambert after he returned from a loan spell at Nottingham Forest.
New Forest boss Alex McLeish decided not to extend the loan and the ex-Spurs defender is desperate for first-team football.
He will sign for Mallorca on loan after talks between Villa and the Spaniards' sporting director Llorene Serra Ferrer.
Hutton will move on a six-month loan deal.
That would make him the first Scot to play in La Liga since Ted McMinn in 1988 for Sevilla.
Before that, Steve Archibald was a huge success at Barcelona and also went on to play for city rivals Espanyol in 1987.
Scottish youth star Jack Harper recently signed a new deal at Real Madrid, but it could be some time before he makes the breakthrough with Jose Mourinho's side.
Hutton, who could add to his 28 caps next month when Scotland face Estonia in Gordon Strachan's first game as manager, has been linked with a move to Mallorca before, but the move has never went through.
Now he is set for a shock switch to Spain, where he will have to try and help dig Real Mallorca out of the relegation zone in La Liga.